The Asian fund arm of UK insurer Prudential Plc said on Thursday it received approval to launch a Saudi Arabian joint venture, its latest move to gain exposure to high-growth emerging markets.

Prudential Asset Management, which operates in nine Asian markets and the United Arab Emirates, said Saudi Arabia's Capital Market Authority had cleared it to set up an asset management company in the country.

The new firm, Prudential Jazira Asset Management, is a joint venture between Prudential and Bank Aljazira. The British insurer and the Saudi bank announced a deal last year to set up an Islamic life insurance venture.

Prudential Asset, which managed about $74 billion at the end of 2007, said the venture is part of its 'ambitious expansion plan in the Gulf region'.

Prudential started its Asian funds business in 1998 when it bought a majority stake in Indian fund manager ICICI Asset Management. From there it expanded to become one of the biggest international fund houses operating in the region.

The firm opened its Dubai office in 2006, initially offering local investors access to its international fund range.

'The Kingdom (of Saudi Arabia) has shown impressive economic growth over the last few years and we believe now is the right time for us to establish operations in this attractive and rapidly growing Sharia market,' Suraj Mishra, a Prudential sales and distribution executive, said in a statement. - Reuters